Can Apricot Lane charge a franchisee for costs incurred during the relocation of the Franchised Business?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
of FRANCHISOR's obligations pertaining to site selection, lease negotiations, construction or other pre-opening obligations under this Agreement. Initial_______
F. Relocation of Franchised Business During Term
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- FRANCHISEE may operate the Franchised Business only at the location specified in Section 1.B above or at the location approved according to Exhibit A to this Agreement. FRANCHISEE may relocate the Franchised Business within its Territory only after notifying FRANCHISOR of the proposed new location and the reason for the change, and submitting the proposed location and lease for approval in accordance with FRANCHISOR's then-current standards, and securing FRANCHISOR's written approval, which shall not be unreasonably withheld. Any such relocation shall be at FRANCHISEE's sole expense and FRANCHISOR shall have the right to charge FRANCHISEE for any costs incurred by FRANCHISOR, and a reasonable fee for its services, in connection with any such relocation of the Franchised Business. If the lease for the site of the Franchised Business expires or terminates without fault of FRANCHISEE, or if the site is destroyed, condemn
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, a franchisee may relocate their Apricot Lane business within their designated territory only after notifying Apricot Lane of the proposed new location and the reason for the change. The franchisee must also submit the proposed location and lease for approval based on Apricot Lane's current standards and receive written approval from Apricot Lane, which will not be unreasonably withheld.
The FDD states that any relocation of the Apricot Lane franchise is at the franchisee's sole expense. Furthermore, Apricot Lane has the right to charge the franchisee for any costs it incurs, along with a reasonable fee for its services, related to the relocation.
It's important to note that if the lease for the Apricot Lane location expires or terminates without fault of the franchisee, or if the site is destroyed, condemned, or otherwise rendered unusable, and the franchisee is unwilling or unable to relocate the franchise, Apricot Lane is not required to refund any fees or costs paid to Apricot Lane.